RadioShack Q3 Net Income Up 23 Percent
FORT WORTH (AP) — Electronics retailer RadioShack Corp. said Monday its third-quarter net income rose 23 percent boosted by sales of smartphones and their accessories.
The company said its kiosks at Target stores, which began rolling out in August, also did well.
Net income rose to $46 million, or 37 cents per share, in the three months ended Sept. 30 from $37.4 million, or 30 cents per share, a year ago. That beat analyst expectations, on average, of 35 cents per share, according to a poll by Thomson Reuters.
Revenue rose nearly 2 percent to $1.05 billion from $990 million last year, slightly better than analyst expectations of $1.04 billion.
Revenue in stores open at least one year rose 6.2 percent. Revenue at stores open at least a year is a key indicator of a retailer’s performance because it excludes growth at stores that open or close during the year.
The company said wireless sales, particularly smartphones, sold well, along with higher sales of power products and wireless airtime were strong. That was partly offset by lower sales of digital converter boxes and related TV antennas.
RadioShack has been the target of takeover speculation this year but nothing materialized.
Its shares fell 65 cents, or 2.9 percent, to $22.15 in pre-market trading.
The company said it is increasing its remaining share repurchase authorization to $500 million from $290 million. RadioShack also lowered its capital expenditures estimate for 2010 to a range of $80 million to $100 million from $90 million to $110 million.
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